Question
Which one of the following par value 12% coupon bonds experiences a price change of $23 when the market yield changes by 50 basis points?
Which one of the following par value 12% coupon bonds experiences a price change of $23 when the market yield changes by 50 basis points?
A.The bond with a duration of 6 years.
B.The bond with a duration of 5 years.
C.The bond with a duration of 2.7 years.
D.The bond with a duration of 5.15 years.
E.None of these is correct.
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
